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Woulfe Mining Corp WFEMF

Woulfe Mining Corp is a mineral exploration company. It is engaged in the acquisition, exploration and development of mineral properties.


GREY:WFEMF - Post by User

Comment by billlcon Jul 12, 2012 5:22pm
314 Views
Post# 20108618

RE: Makes me wonder

RE: Makes me wonder

....Juncles, I agree with you. Tentops, I also have Great Western and Largo.along with Woulfe. I have been wondering whatever happened to the efficient markets hypothesis taught in business schools in the past.

....Let's assume that WOF is worth 1.80 two years from now and .20 today (GWG figures would be 3.60 and .40). Using the PV = FV/(1+r)^2 or (1+r) = the square root of FV/PV = 1.80/.20)^.5 we find r the required rate of return is 200%!

....Suppose there is an 80% chance the project fails completely then the payoffs would be 1.80, 0, 0, 0, and 0 averaging .36. (.36/.20)^.5 = 1.3416 with the expected return being 34.16% even with an 80% failure rate. Does this project have better than a 20% chance? Again, J the price seems to be crazy low. So, what happened to EMH?

 

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